Consumer Reports: Travel clubs can be expensive mistake

Expensive vacations to exotic places often seem out of reach. That's why many people join travel clubs, which promise years of discounted airfare, hotels and dining.

But Consumer Reports has found that hundreds of those dream vacations have turned into nightmares.

Theresa Raimondi received an enticing offer in the mail, free round-trip airfares if she and her husband would attend a sales pitch in a nearby office and consider joining a travel club.

"They promised us that we were going to have the best vacation at the cheapest price that we could ever believe. That you could get a five-star hotel for $45 a night. We could get airfare $100 round trip," Raimondi said.

She forked over more than $6,000 for a lifetime membership, but she was never able to book a discounted trip. When she went back to the office to complain, the company had disappeared.

Consumer Reports says problems with travel clubs have been found throughout the country.

"The attorneys general of several states have gone after at least six of these clubs, obtaining settlements from $50,000 to $7 million. In at least one case, an owner was sentenced to prison," said Margot Gilman with Consumer Reports.

The scheme Raimondi fell victim to had many of the red flags consumers should watch out for: an unsolicited offer, like the postcard promising free airfare, a high pressure sales presentation and expensive up-front costs.

"Before you spend any money on a travel club, you should research it online at the Better Business Bureau website BBB.org. And don't forget customer reviews online. They can also be really useful," Gilman said.

Raimondi eventually was reimbursed about $2,000 dollars from a judgment against the company, but says she is still out about $5,000. She says she's learned her lesson.

"If it's too good to be true, it probably is," she said.

Those who believe they've been a victim of a travel club scam should contact the Better Business Bureau. Complaints can also be filed with the local consumer protection office.